A coalition of health organisations says tobacco companies are exploiting concerns about the illicit cigarette trade to undo decades of smoking control policies and push for tax cuts. The health organisations say they are particularly concerned by reports MPs heard evidence from tobacco giant Philip Morris in secret.
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TRANSCRIPT
On the second day of public hearings in a Senate inquiry into the booming illicit tobacco trade, a coalition of health organisations released an open letter.
In the letter, the Cancer Council, Heart Foundation, Public Health Association and others called for transparency in public health policy.
The open letter comes after representatives from major global tobacco company Phillip Morris were granted a private, undisclosed hearing at the inquiry earlier this month.
Anita Dessaix from the Cancer Council's Public Health Committee says the secret hearing undermines Australia's obligations to protect policy-making from tobacco industry interference.
"Disappointingly that tobacco industry were invited to participate in this inquiry, behind closed doors, with the cameras switched off, and witnesses not named. And again, really concerningly, it is in breach of that Framework Convention on Tobacco Control, and they were obviously offered a very quiet hearing compared to all other public health groups."
The inquiry into the illegal tobacco industry, chaired by Liberal senator Leah Blyth, is investigating the scale and nature of the illegal tobacco market and its economic, social and health impacts in Australia.
It's also examining distribution channels and methods of illegal tobacco smuggling, and the involvement of organised crime groups, after a series of firebombings and violent robberies related to the illegal tobacco trade in recent years.
AAP reports Phillip Morris representatives used their private and undisclosed hearing to lobby for cheaper legal cigarettes, claiming the crisis would lessen if the government dropped the tobacco excise.
Ms Dessaix says the coalition of health groups are deeply concerned the tobacco industry is trying to use its influence to wind back decades of effective public health policies.
"We've obviously seen continued declines in smoking, as well as young people, for the better part of 10, 15, 20 years. Having tobacco industry have a seat at the table, as well as industry front groups such as retailers, there is no place for them in influencing public health policy in Australia."
Last week's budget revealed Australia's growing tobacco black market had slashed billions more dollars from the federal budget bottom line, with revenue from the tobacco tax now forecast to plummet to just over $2 billion a year by 2030.
Analysts say lower smoking rates have played a part, but a key driver has been the explosion in illegal tobacco sales, which the government estimates make up more than half of the total tobacco market.
Treasurer Jim Chalmers has resisted calls to cut the excise, saying he's not convinced it would make a difference to illicit sales.
Ms Dessaix says stronger health policies are the best way to tackle the problem, rather than reducing or eliminating the tax.
"It's really important to remember most smokers actually don't want to be smoking. So what more can governments be doing to support those two thirds of smokers that we know want to quit. It's about looking at making sure we're doing everything we can about smoking cessation support, as well as public education and reminding everyone of the health harms caused by tobacco. If we're doing those things, and doing those things really, really well, we will start to see the issue of illicit tobacco brought under control."
It's an issue that has been raised in the inquiry into the illegal tobacco industry's second round of hearings.
CEO of Master Grocers Australia Martin Stirling is among those calling for the tax to be cut.
"Our retailers tell us that their customers have reached the point where they are making rational decisions made by price, not because they want to be purchasing illegal tobacco, but because they have no choice. And the customers that our retailers speak to on a daily basis tell us if the the product was a little bit cheaper, they would happily purchase the legal product that is attracting excise."
Labor Senator Dorrinda Cox, who questioned Mr Stirling at the inquiry, has rejected that claim as unfounded.
"That is not something that is quantifiable, that has been the evidence that has been received by this committee. So if you're having off the cuff comments, and getting anecdotal evidence, that is not substantial enough for us to make a policy decision, a national policy decision."
The inquiry has also heard evidence on the rise in violent crimes linked to the illicit tobacco market.
Hilda Sirec is the Deputy Commissioner of National Security Investigations with the Australian Federal Police.
She's told the inquiry related inter-gang violence and property damage are being experienced across jurisdictions.
Deputy CEO of the Australian Criminal Intelligence Commission, Adam Meyer, also says there's a web of criminal activity related to the illegal tobacco trade, and its impacts are vast.
"Whether it be violence against individuals, or over 200 Arson attacks we've seen at tobacconists and a range of other facilities, which is largely linked to inter-group violence, so various groups trying to take greater control of the illicit tobacco market themselves, and that violence unfortunately has spilled over into the community, and there has been at least three deaths associated with some of this violence."
The inquiry has also heard the illicit market, and associated violence, is also driving up insurance premiums for retailers of legal products.
Australian Small Business and Family Enterprise Ombudsman spokesperson, Aidan Storer, has told the inquiry legal tobacco retailers have reported multiple challenges - and they're not the only ones.
"Retailers of legal tobacco products in premises have seen upwards pressure on insurance premiums, largely alligned to the risk and safety risk, but also other retail businesses that might be co-located in those areas where tobacco sales are occuring because often those retail premises are seen as a higher risk precinct in and of itself."
The parliamentary inquiry is due to release its report on findings from the hearings by the middle of this year.
